Cleco Reaches 20-Year Agreement with City of Alexandria - KALB-TV News Channel 5 & CBS 2

Cleco Reaches 20-Year Agreement with City of Alexandria

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ALEXANDRIA, La. (KALB News Channel 5) - Pending a decision by the Alexandria City Council, Cleco reached a 20-year agreement with the City of Alexandria.

"Cleco will be in a long term agreement with us, which is great for them and great for us because it stabilizes us and doesn't force us to go out and bond excessively and put us at our bonding limits to do things." Said Jacques Roy.

Cleco stepped in when the City of Alexandria considered the possibility of becoming self-sustained.  

"We ran into reality, when we were looking at doing the full compliment for the city to do everything, the mayor mentioned we would use our entire bonding capacity, we're looking at different projects, down the road in the near future that we'll need to do, maybe a surge project that may be several million dollars and other things, for the same dollars we were able to procure the asset of Cleco to help us." Said City Council President Chuck Fowler.  

For Cleco Power President Darren Olagues, the 20 year partnership means growth.  

"We are pleased to reach an agreement with the city of Alexandria for capacity, energy and services and look forward to continuing our long term relationship. This contract follows the wholesale model we have designed for our utility's growth strategy, and also provides a platform for the city's long term planning for future power needs." Said Olagues.

For Alexandria residents, the city says this deal was made with them in mind. For the city, the new agreement calls for a tiered pricing structure. KALB is told that the structure will result in more stables costs for those using the service.  

"We're going to be in the best part of the bell curve in the state of Louisiana, on a comparative basis, Alexandria has been now, because of the settlement agreement, we're not going to fluctuate a lot from that coming out of this process because of what we're doing, that is important to the rate payer so bottom line for the rate payer, they won, big." Said Roy.

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